Moneyʹs Function as a Medium of Exchange Means That

question 566

Multiple Choice

Moneyʹs function as a medium of exchange means that

• A) money can be used to store wealth.
• B) money requires a double coincidence of wants.
• C) money serves as an acceptable means of payment.
• D) money is a common denominator for expressing the prices of goods and services.

---

Definitions:

LIFO Cost

An inventory valuation method ("Last In, First Out") that assumes the most recently acquired items are the first to be sold, affecting the cost of goods sold and inventory value.

LIFO Reserve

An accounting term that represents the difference between the cost of inventory calculated using the Last-In, First-Out (LIFO) method and using the First-In, First-Out (FIFO) method.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.